The Ohio Democrat. (Logan, O. [Ohio]) 1886-1906, 1887-12-17
THE SURPLUS PROBLEM.


Other Financial Topics Touched Upon
In His Annual Report-sccrctary Endi-
colt and Attorney General Garland Give
Accounts of Their stcwnrdships.
WASHINGTON, Dec. s.-The Secretary OF the
Treasury In his annual report submitted to Con-
gross says that the total ordinary receipts OF
the Government for the year cnded June 30,
1887 were s871, i03, ,277 and that the total ord-
nary expenditures were e3i5, ,S35, ,42S, ieav-
| ing surplus OF e55,507,S4 which, with IN
amount drawn from the cash balance In the
Treasury Of s24,455, 7sO, notes total surplus
of $50, ,023,570, which was ofered to the redemp-
tion OF bonds. The receipts for the year show
an increase Of 'e3i,983550 over tho
year before, and the expenditures
show On increase OF s25, 1901. For
the present year the revenues IRE
estimated at $3.50, 600 900, and the expenditures
| 1915, 1885, leaving an estimated surplus Of
| fG8, ,18l2l4 June 30. 1888. The Secretary esti-
mates the surplus for the year 1880 at $50, 46o.
206. In regard TO the surplus revenue, the Sec
| retary says:
'Taxation and currency reform we're the
questions which my distinguished predecessor
| deemed to be OF the most pressing Importance,
| and to them he devoted q large part OF the
| two annual reports which he made 10 the Con-
| gress. find tho same subjects to be still the
most important OF all those to which
! II Is my duty to coil your attention. and
1t Is not necessary to do otherwise than follow
| the general lines laid down by him In treating
| them. Circumstances have heightened the
| immediate urgency of taxation reform as Affect
| ing tho surplus revenues OF the Government.
| The urgency Is so great that the question of
| surplus revenues demands the earnest attention
| of both the legislative and executive branches
| Of the Government"
| The Secretary then gives the following ways
| in which the receipts and expenditures OF the
Government may be made about equal:
| a. The purchase Of the interest bearing debt
1 r,ff f1n INun tart
| "2. Large expenditures by Government for
other purposes than the purchase OF bonds, SO
that they shall each year equal the taxation OF
| that year.
| "3. Reduction of the revenue from taxation
to the amount actually required to meet neces-
| sary expenses.
"Al of these expedients have in common
| the one merit of preventing the arrangement
| to business which must follow boarding or lock-
| ing up in the Treasury the circulating medium
| OF tho people"
| In regard to the first plan the Secretary
agrees with what the President in his message
said on the same subject. He then says:
81 Gun not believe that it will adopt the sec.
! Ond expedient, viz: the enlargement OF Gov
| ernment expenses simply to cNpend money
| raised by taxation when the public veal does
not otherwise call for the expenditure.
| Reduction Of the revenue from tax
alton is the only ft remedy for the
| evils that threaten the country. This
| may be accomplished In various ways One
is to reduce or abolish internal revenue
| taxation. In favor of this is the fact that in u
| small part OF the Southern States the internal
tax on liquors and tobacco is thought to be OPP
pressivc and is odious to the people OF those re-
gions; and the further fact that by its reduc-
tion the expenses OF its collection might be
| somewhat reduced"
The third expedicnt is discussed ut great
length, the decrease OF revenue from customs
1,yi ippro cpuI Ittinc to, alr ;l,if;
extent being disposed OF summarily. The Sec
retary says that the objection to internal taxa
tion on the ground that it began during
the war, and, therefore, is o war measure,
| is not in reality an objection. He
disposes OF the abolition OF the internal
tax by saying: ITO do away with
the whole revenue from Internal taxes at pres
ent would so diminish the revenues that II
would be necessary either to lay duties on arti.
cles OF importation now free, such as tea and
coffee, or to suspend the sinking fund require
ment, and also materially diminish other ex
penses of government"
The Secretary recommends again the anal
gamation of the collection OF customs dues and
internal taxes, and the passage by Congress OF
the bill introduced two years ago and known as
the administration BILL" revising the rules
and regulations imposing and collecting i'm
port taxes.
"'The surplus in the Treasury on December
amounted to t55,a5s 7O1, and the Secretary esti
mates that it will aggregate Sl4O0OO,O00 on
June 30 next. On this point the Secretary
| says: zone use which can be made OF this
money is to diminish taxation to such an ex-
tent that the annual revenue will be less
for some years to come, than the appro
priations; thus the accumulated surplus
would be used for ordinary expenses, and tho
people would gain the greatest possible good
for it. Doubtless by the time this money was
spent In the pursuance Of this plan, the reve
| nues would have SO increased rs to be equal tC
the proper annual expenses Experience
teaches that this would probably be the case
In the meantime portion of thi.
would be available for the business OF the
country, and, us upon withdrawal from them
| it would Mt once be returned to the channels oi
business through Government payments, nj
| shock would be caused by such withdrawal"
The recommendations for revenue reform art
sim ply rehash OF the Presidents message, o.
rather were exhausted in that document
After deducting the gold and silver coin helt
| for the gold and silver certificates in circula
tion, 1t is found that the Government owned
80, ,S21 S98 less gold coin and 39,G7576U less
standard silver dollars on Nov. l. 1887 than 1
did on July !, 1885; during the intervening
period 43,3s8S71 standard silver dollars wer,
coined. AS there is still so much coined golt
owned by the Government (SSs, ,6o7, $50 Nov.
1857 it has been thought best to allow thu
gold to accumulate in the form Of bullion unit
|
The statements of the Treasurer show tina
after deductng the demand and trust liabili
ties OF the Government and the amount o.
money on deposit in National bank deposito
rios, the net money in tn. Treasury vaults wa
$92, 406 70i.58 June 30, 1886; October 81, 1887
it was $40, ass, ,36l.T7.
One of the most interesting facts shown b,
the foregoing statement is the increase in tn
number of standard silver dollars owned by tn
Government and the increased use of the sam
money by the people in the form OF silver cel
tihcates. The 80, 81 und VI certificates furnis
II convenient currency, and 1t is evident tha
the future use OF the silver dollar will be al
most exclusively in that form.
It is waste to coin and store any more silve
dollars at present. There is no function whic
those that are coined after this time will proba
bly, ever perform except to lie in Govern
ment vaults and be basis upon whic
silver certificates can be issued. 1t
seldom that my one wishes to have his si
yer certificate exchanged for the silver do
lar itself; consequently limited number Q
coined dollars will perform the work OF redeem
ing certificates. The s2l4, 900 which are no,
In the treasury will more than suffice to re
deem, rs they may he presented from time
time, the silver certificates that have alread
been issued or thut can be issued against q
the dollars which will be coined for years I
come under the present law.
'"Fhe law should DO SO amended" the repoI
says, ''ns to authorize the Secretary of tn
Treasury to issue certificates against the coli
ing value OF the bullion bought and 10 col
only such number Of dollars Us he might deer
expedient hereafter. This would not restrit
| In the least degree the use OF tho silver dolla